Moscow and New York (December 14, 2005) - Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP) , today announced that after being unable to reach unanimous agreement on the proposed 2006 annual budget at today's Board meeting, the Board decided to work constructively with management to resolve all remaining budget issues in order to try and obtain final Board approval for the 2006 budget in early 2006.
Until such final Board approval, the Company's management will operate its business in accordance with the 2006 consolidated budget that it proposed at today's Board meeting. In addition, until such time as the 2006 annual consolidated budget is approved by the Board, the Company's management will endeavor to update the Board on a more frequent basis concerning the Company's operations and capital expenditures.
VimpelCom has always prided itself on being a transparent company and maintains that previous public disclosures made by it in connection with the URS acquisition have been consistent with this approach and VimpelCom's relevant disclosure obligations.
VimpelCom is a leading international provider of mobile telecommunications services in Russia and Kazakhstan, with newly acquired operations in Ukraine. The VimpelCom Group's license portfolio covers approximately 200 million people. Geographically it covers 78 regions in Russia (with 136.5 million people, representing 94% of Russia's population) as well as the entire territory of Kazakhstan and Ukraine. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange ("NYSE"). VimpelCom's ADSs are listed on the NYSE under the symbol "VIP".
This press release contains "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements relate, among other things, to management's intention to operate in the absence of a Board-approved annual budget for 2006 and the Board's intention to work with management to resolve all remaining budget issues. There can be no assurance that our shareholders (including Telenor) or other parties will not challenge the actions of management with respect to the operations of the Company and/or any of its subsidiaries during the period when there is no Board-approved annual budget for 2006, or that the Board will approve an annual consolidated Budget for 2006. If any challenges against the Company or management are successful, including if they were to lead to the possible unwinding of transactions concluded during the period when there is no Board-approved annual budget for 2006, such challenges could have an adverse effect on the Company, its operations and its financial condition. Certain additional factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risks described in the Company's Annual Report on Form 20-F for the year ended December 31, 2004 and other public filings made by the Company with the United States Securities and Exchange Commission, which risk factors are incorporated herein by reference. VimpelCom disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this press release, or to make corrections to reflect future events or developments.
For more information, please contact:
Tel: 7(495) 974-5888
|Ian Bailey/Michael Polyviou
Tel: 1(212) 850 5600